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Construction Loans at Groundfloor

Let's talk about new construction loans with Groundfloor.

The Groundfloor Lender Difference

  • No minimum transactions experience required
  • Five year lookback for experience
  • Minimum property value $50,000
  • Minimum credit score of 640​
  • 12 and 18 month terms
  • No hard credit pulls
  • Rates start at 7.5% and roll points into closing cost
  • Loan sizes from $75,000 to $750,000
  • True deferred payments - no payments until repay
  • Up to 70% Loan-to-After repair value

The Preferred Private Money Lender

Are you a real estate professional? Are you a builder? Are you an investor that wants to build an investment property?

If so, then you need access to the right private money lender. That’s why we are the preferred choice for many real estate professionals.

Have Any New Loan Questions?

Learn more with some of Groundfloor’s frequently asked questions.

Is the interest charged on the entire amount or just the funds drawn?

Just the drawn funds

Do I have to have my building permit in order to close?

Yes, we require the permit to be in hand, however we can consider a land only loan to help you secure the property during the permitting process 

Do you need experience to do new construction?

 While you don’t need to show experience in new construction, you need to show 4+ experience over the past 5 years of either rehabs or rentals.

Can you do development loans?

Can you do development loans?  No, we do not have funding mechanism for horizontal build costs.  Ideally we look for infill scenarios.

What Is a New Construction Loan for Builders?

First. What is it? A new construction loan is a type of financing designed specifically for individuals or businesses looking to build a new structure or remodel an existing one by taking it down to the foundation. This loan offers interest only on disbursed funds, as well as our deferred payment program.

 

How are these new construction loans structured?

Our new construction loans operate slightly differently than our renovation loans.   Borrowers must have the experience to be eligible. Minimum of 4 transactions in the last 5yrs.  These can be flips, rentals, or new construction.  The loans fund different percentages of the construction based on the tier in which the borrower falls.  We also tend to grab additional documents for this type of loan.  This would include 1 bank statement, a general contractor license, and the contract you have with your general contractor.  While they are not part of the loan,  we still need to confirm there is a contract in place. Once a loan is approved, the borrower is able to access the full amount of the loan in a series of draws. Interest accrues on the loan as it is used.

 

What is the advantage of investing in new construction loans?

As is the case with all loans we offer, rates are risk-adjusted based on the creditworthiness of the borrower and the value of the collateral relative to the loan balance. In general, we have found that borrowers who take out a new construction loan are more experienced and have a greater financial capacity than a typical renovator. Furthermore, new construction overall is less risky than a renovation because it is essentially a clean slate — often with renovation projects, you run into issues that you were not expecting, whereas with new construction, you are more aware of all contingencies because you are starting from the ground up.

Finally, the current market for these types of loans is wide open — for the most part, builders have to turn to banks or larger non-bank lenders in order to receive loans for their new construction projects. True to our mission of creating a radically open, decentralized, and accessible capital market, we saw an opportunity for Groundfloor to step in and change the game.

 

Ready to tackle your new construction project? Meet with us!

Ready to Get Started with New Construction Loan? 

Already a Groundfloor customer? Click Here

Borrower Spotlight

Meet Our Borrowers

Learn more about a few of the borrowers that have worked with Groundfloor to turn bring their project to life!
Jonathan Reid
Atlanta, Georgia
Groundfloor Projects: 41
Read More
Cedric Williams
Atlanta, Georgia
Groundfloor Projects: 23
Learn More
John Brunstad
Atlanta, GA
Groundfloor Projects: 12
Learn More
Jeanine Smith
Atlanta, GA
Groundfloor Projects: 5
Learn More
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Check Out Our Podcast

We're talking with expert leaders to hear more about how real estate entrepreneurs and investors can make a real impact in this dynamic industry.

We’re excited to introduce you to the dynamic partnership between Groundfloor Finance and RicherValues. These two companies have teamed up to bring you innovative solutions in the field of real estate investing and financial planning. As real estate professionals, we understand the importance of understanding the value of a property before making an investment and how it can impact the potential return on investment.

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Groundfloor (LROs)

SEC Filings
Offering Circular

A copy of these materials may also be obtained for free on the SEC’s website at www.sec.gov.

* 10% returns based on previous 8 years of historical returns and current available investments, ranging from 4% – 14%, barring any losses.

PLEASE SEE OUR OFFERING CIRCULARS BELOW:

OFFERINGS FOR SECURITIES UNDER REGULATION A ON THIS WEBSITE ARE CURRENTLY OPEN TO ALL US RESIDENTS WHERE THE ISSUER HAS FILED STATE NOTICE.
The information on this website does not constitute an offer to sell the limited recourse obligations (or “LROs”) identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 (“Regulation A”) only to investors who are residents of the states in which Groundfloor Finance Inc. (“Groundfloor ”), or one of its affiliates has either qualified an offering statement under Tier 1 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about these offerings here .



The information on this website does not constitute an offer to sell the limited recourse obligations (or “LROs”) identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 (“Regulation A”) only to investors who are residents of the states in which Groundfloor Finance Inc. (“Groundfloor”), or one of its affiliates has either qualified an offering statement under Tier 1 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about these offerings here .
Groundfloor or one of its affiliates has filed offering circulars and post-qualification amendments (or “PQAs”) (including supplements to such filings) with the Securities and Exchange Commission (the “SEC”) covering the current offering of LROs. An investment in LROs entails risk of loss, and you may lose all or part of your investment. Each investor should carefully consider the risk factors and other information discussed in the qualified offering circulars/PQAs (and current supplements, if any) before purchasing LROs.
Some statements in the offering circulars/PQAs and on this website may contain forward-looking statements and are based upon current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties. Although Groundfloor believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. You should consult with your own attorneys, accountants, and other professional advisors prior to making an investment.
The information on this website does not constitute an offer to sell or a solicitation of interest in any LROs that may be qualified in the future. No money or other consideration is being solicited with respect to any LROs that have not been duly qualified, and if sent in response, will not be accepted. No offer to buy any LROs that have not been duly qualified can be accepted and no part of the purchase price can be received until an offering circular/PQA covering such LROs has been qualified by the SEC. Any such offer to buy unqualified LROs may be withdrawn or revoked, without obligation of any kind, at any time before notice of its acceptance is given after the date of qualification. An indication of interest in our offerings involves no obligation or commitment of any kind.
The information contained in the Offering Circular and offering materials presents a general summary of the business and the purpose and principal business terms of an investment in LROs. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the offering circulars/PQAs.
Articles or information from third-party sources outside of this domain may discuss Groundfloor (or its affiliates) or relate to information contained herein, but Groundfloor and its affiliates do not approve and are not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party content, do not constitute an approval or endorsement by Groundfloor or any of its affiliates of the linked or reproduced content.
Neither the SEC nor any state securities commission or regulatory authority approved, disapproved, endorsed, or recommended the merits of the offering described in the offering circulars/PQAs or reflected on this website. Groundfloor’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).